Business Analysis of Apple Inc. free essay sample

Business Analysis of Apple Incorporated Sarah Norton MGT/521 May 16, 2011 Jerry Davis Business Analysis of Apple Incorporated Apple Incorporated is a company that has made their mark in designing and marketing electronics, computer software, and personal computers. Some of Apple Incorporated’s most notable products include the Macintosh computer, the iSeries; iPod, iPhone, and iPad. Along with these computer applications Apple Incorporated also runs the iTunes store; a multimedia site where music, movies, and television shows. There branding genius has led to $65. 23 billion dollars in sales in 2010. Looking at Apple Incorporated as a mutual fund manager it is important to perform a business analysis of the company to decide if it is wise to invest in this company. SWOT Analysis The strength of Apple Incorporated includes strong brand image and marketed financial performance. Weaknesses of Apple Incorporated are product recall and the competitive market of electronics including IBM, HPQ, and Dell. Opportunities for Apple Incorporated include demand for smartphones and continued growth of need for mobile computers as society has become more mobile and needs for technology flourish. We will write a custom essay sample on Business Analysis of Apple Inc. or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Threats to the growth of Apple Incorporated include competition, dependence on specific suppliers, and environmental concern that Apple Incorporated is not a green company. The stakeholders of Apple Incorporated include shareholders, lenders, apple employees, manufacturers and their employees, customers, suppliers, and the music industry. All stakeholders have unique interests in the productivity and development of Apple Incorporated products. Shareholders are looking for growth and the chance to gain a return on their investments. As the company grows and earns more money stock goes up and gives shareholders confidence in Apple Incorporated Lenders have vested interest on success and innovation of Apple Incorporated because the institutions want the company to succeed and can repay debts earned. Employees of Apple Incorporated need the business to succeed so they can continue to have solid jobs in the industry. There are currently 46,660 full-time and 8000 part-time employees at Apple Incorporated. Manufactures and their employees need Apple Incorporated to continue to make product to keep their businesses flourishing and retain employment. Suppliers of Apple Incorporated products need the business to flourish so they can bring product to market. Last the music industry has vested interest in Apple Incorporated to continue to provide services that will expand their businesses and revenue. Currently music labels earn approximately 70% of the revenue- driven by downloading signed artist music. With the music industry’s reliance on moving with technology for profit, they see a need to fulfill customer’s wants of being able to get the music he or she want to purchase with speed and ease. The importance of all stakeholders who would be affected by Apple Incorporated’s growth and development makes it very important to evaluate wisely SWOT data to see if it would be acceptable to invest further in the company. Investing in Apple Incorporated Apple Incorporated’s strength’s lies in its branding platform. Their logo of a bitten apple is recognized globally. The iSeries continues to be in high demand and held as the gold standard. Sleek, colorful design and touch screen application are some of the offerings brought to market from Apple Incorporated Sales have continued to explode with each new generation of products released. Apple Incorporated continues to work on more innovated products that would allow for multiple systems usage on one computer. This would allow the customer to use Apple Incorporated MacIntosh PCs in conjunction with Microsoft. This would allow the customer a choice to use the best application to complete projects and mesh existing paperwork together. Apple Incorporated’s financial performance continues to grow exponentially earning $24,578 million total revenue in 2007 to $42,905 million total revenue in 2009. This is a growth rate of 32. 1%, giving shareholders confidence in the growth of Apple Incorporated. The weaknesses of Apple Incorporated include product recall; Apple Incorporated’s products are complex in nature and made by third party manufacturers. When recalls ensue it is damaging to Apple Incorporated’s reputation and can lead the customer to one of many competitors. Apple Incorporated must stress the importance of quality control and provide immediate rectification to any products that do not produce acceptable standard. Apple Incorporated continues to capitalize on the need of mobile phones and PC’s. As businesses continue to grow globally, immediate feedback is desired and communication is essential. Some common threats to Apple Incorporated’s success are problems that plague most businesses; competition, many brand name companies are following the trends of Apple Incorporated development. Apple Incorporated has to continue to be on the forefront of innovative ideas. Specific suppliers not living up to high standard must be investigated and may lose the ability to provide Apple Incorporated services to the customer. They perform monthly audits and training to their supplier staff for proper treatment and expectations in the workplace. Apple Incorporated has been scrutinized in the past for not being a green company. Apple Incorporated has addressed the concerns about being environmentally friendly and posts updates of their progress directly on their website. Apple Incorporated have also began a on old system by back program, producing energy efficient products which take little energy to run, added motion sensor lighting to their plants, and provide transit incentives for all United States employees to car pool or use biodiesel commuter buses. Financial Analysis Comparison To understand the financial means of a company, reviewing the income statement, balance sheet and cash flow clearly defines if the company is worth investing in. When considering investing money and time to a particular company, it is good to compare that companies financial reports with their biggest competitors. Financial Report: Companies |Apple 2010 |Apple 2007 |IBM 2010 |IBM 2007 |Dell 2010 |Dell 2007 | | INCOME STATEMENT- all number’s in millions Total Revenue |65,225 |24,578 |99,870 |98,786 |61,494 |57,420 | |Gross Profit |25,684 |8,152 |46,014 |41,728 |11,396 |9,516 | |Operating Income |18,385 |4,407 |18,150 |13,516 |3,433 |3,070 | |Income Before Tax |18,540 |5,006 |19,723 |14,489 |3,350 |3,345 | |Income After Tax |14,013 |3,495 |14,833 |10,418 |2,635 |2,583 | |Net Income Before extra items |14,013 |3,495 |14,833 |10,418 |2,635 |2,583 | |Net Income |14,013 |3,495 |14,833 |10,418 |2,635 |2,583 | | BALANCE SHEET Total Current Assets |41,678 |21,956 |48,116 |53,177 |29,021 |19,939 | |Total Assets |75,183 |25,347 |113,450 |120,432 |38,599 |25,635 | |Total Current Liabilities |20,722 |9,280 |40,562 |44,310 |19,483 |17,791 | |Total Liabilities |27,392 |10,815 |90,404 |91,960 |30,833 |21,196 | |Total Equity |47,791 |14,532 |23,046 |28,469 |7,766 |4,439 | |Total Liabilities Shareholder’s Equity | 75,183 | 25,347 | 113,450 | 120,430 | 38,599 | 25,635 | | CASH FLOW Cash From Operating Activities | 18,595 | 5,470 | 19,549 | 16,088 | 3,969 | ,969 | |Cash From Investing Activities | -13,854 | -3,249 | -8,507 | -4,675 | -1,165 | 1. 003 | |Cash From Financial Activities | 1,257 | 739 | -12,429 | -4,740 | 477 | -2,551 | |Net Change in Cash | 5,998 | 2,960 | -1,522 | 6,969 | 3,278 | 2,492 | | The above data outlines a stark contrast between all three competitors. Looking at the income statement; Apple Incorporated’s total revenue grew from $25 million in 2007 to $65 million in 2010. In compa rison, IBM’s total revenue only grew from $98 million in 2007 to $99 million in 2010. Although IBM’s revenue is considerably higher they have stayed flat over the past four years where Apple Incorporated has more the doubled. Dell’s revenue in 2007 was $57 million and $61 million in 2010. This is very small increase in four years and Apple Incorporated has now surpassed Dell in revenue earned. Looking at net income, Apple Incorporated has grown from $3. 5 million to $14 million, this a market gain of three times their total profit in four years. IBM and Dell have stayed flat and not markedly increased their net incomes. Comparing the balance sheets of each company, the total liabilities and share holder equity has again grown three times for Apple Incorporated from $25 million in 2007 to $75 million in 2010. IBM has decreased from $120 Million in 2007 to $113 million in 2010. Dell has not decreased but has shown marketable change going from $25 million in 2007 to $38 million in 2010 compared to Apple Incorporated. Cash flow between 2007 and 2010 for each company is vastly different. Apple Incorporated net change in cash went from $3 million to $6 million. IBM’s cash flow decreased from $7 million to -$1. 5 million and Dell’s growth was again minimal from $2. 5 million in 2007 to $3 million in 2010. Analyzing the financial data of the three companies, Apple Incorporated, IBM, and Dell it becomes apparent that Apple is far exceeding expectations of growth and development in the past four years. With new products in the pipeline and investing $14 million in 2010 in to new product development compared to IBM’s investing of $8. 5 million and Dell’s $1 million, it gives shareholders confidence that Apple Incorporated will continue to grow and become a strong leader in the business. Investing in Apple Incorporated’s Future. Evaluating the SWOT information and the financial comparison of their biggest competitors, Apple Incorporated, will continue to be a market leader. Committed to growth, innovation, development, and green initiatives, weighing the increased profitability over the past years and the production of new software that can be used on all systems from Macs to Window’s application, it appears that Apple Incorporated would be a great company to invest in. References Abimbola, T. (2010). Brand Strategy as a Paradigm for Marketing Competitive. Journal of Brand Management, 18( ), 177-179. Apple Inc. (2011). Apple and the Environment. Retrieved from http://www. Apple. com Schultz, P. , Helicoid, D. Journal of Critical Incidents, 3( ), 42-49.

Democracy vs Dictatorship essays

Democracy vs Dictatorship essays Imagine the next time you step into the voting booth your ballot only lists one candidate to choose from. Or perhaps your ballot lists four candidates, but they are all from the Liberal party. Dictatorships are one party political systems that are ruled by one leader or an elite group of people under the principle of authoritarianism. Some feel that dictatorships are the most effective form of government because decisions are made quickly and extreme nationalism benefits the military and economy. These individuals value order, nationalism, and authority. However, these systems often result in violence, repression of the public, and few provisions for changes to the system. Democracies are multiparty political systems that rest on the principle of rule by the people. Most people that live in democracies have civil liberties1, and political rights2. Individuals who feel that multiparty systems are the best government value equality, accountability, and freedom. Nations that have multip arty political systems will meet the needs of the public better through the means of political equality, a higher standard of living3, and civil liberties. Dictatorships often occur when a nation is economically and politically unstable. An example of this is Napoleons coup d etat in 1799 France. In a system of authoritarian rule decisions are made efficiently because very few people are involved in the decision making process. The leader or elite group at the head of the government decides on new policies and economic measures, then makes sure that the public abides by them by using tactics of force and indoctrination. Dictatorial systems have helped nations recover from economic turmoil many times in the past. The extreme nationalism that is born from propaganda and government sponsored youth organizations encourages people to work harder for the benefit of their country. Newly motivated work forces easily meet their production goals. If th...

Wild Frontier Pt. 3 Assignment Example | Topics and Well Written Essays - 750 words

Wild Frontier Pt. 3 - Assignment Example WSS as it integrates the intranet and web applications will make it easier for the company to deploy their applications. The organization’s intranet can be accessed from anywhere by its employees. Uploading the web applications on the intranet makes it easier for the remote offices to access these applications without them necessarily being installed on the local machine (Husman, 2007). Windows SharePoint Services are used for creation, management and sharing of documents. Like any other organization, Wild Frontier has several departments and these departments are interconnected both in the headquarters and field offices. The finance department in the remote office should be able to access the records at the headquarters, and this can be accomplished using SharePoint. Employee A at the headquarters will upload a document on the SharePoint workspace of the finance department and Employee B in one of the field offices accesses it via the intranet. On this very document, Employee B can make changes and save these changes (Husman, 2007). This means that there are two different people working on the same document- each at a time- this avoids duplication of work. The advantage is that SharePoint has document versions and if one does not like the current edited version, they can revert back to the previous version without redoing the whole document. The management wants to make use of the same number of printers with the increased taskforce and field offices. To be able to accomplish this, the printers will have to be connected on a network. Having the printers connected to a common network will make it easier for the employees to print on any machine in the building as long as the printer is configured on the user’s machine or laptop. Additionally, if the printers enable the users to print wirelessly then this makes the whole printing process much faster and convenient. This will see to it that some of the printers are moved

Quantitative Critique Nursing Research Paper Example | Topics and Well Written Essays - 1000 words

Quantitative Critique Nursing - Research Paper Example Jemmott is with the school of nursing in the University of Pennsylvania and was the lead author in overall aspects of the study including the intervention procedures and training of facilitators. John B. Jemmott III is with the University of Pennsylvania as well but under Annenberg School for Communication. J. B. Jemmott III assisted in aspects of the study concerning design, measures, and data analysis. Meanwhile, Ann O’Leary is with the Centers for Disease Control and Prevention in Atlanta Georgia and also assisted in the development of intervention procedures and measures and the application of social cognitive theory(Jemmott, Jemmott & O'Leary, 2007, 1040). The authors’ qualifications and preparations were brief, specific, and clearly stated. It was brief because only needed information such as educational qualification is identified. Also, the authors’ preparation were not elaborated and focused only on their distinct role in research. The descriptions of au thors’ were specific as the university to where they belong was also clearly stated. The authors’ qualifications and preparations do not determine the validity and reliability of the study(Hoskins & Mariano, C., 2004, 72) but their background information is relevant to the readers as it will determine sufficiency and relevance of information presented. Title and Statement of the Purpose and Problem Background The title of the study is â€Å"Effects on Sexual Risk Behavior and STD Rate of Brief HIV/STD Prevention Interventions for African American Women in Primary Care Settings.† According to Loiselle, McGrath, Polit & Beck(2010), clarity, research problem visibility, and study population must be considered in critiquing the title of the study (p. 359). The study title presented above is clear and specific as it does not only focused on general behavior but to the specific sexual risk behavior and STD rate of brief HIV/STD prevention interventions. The title itse lf also suggests the research problem which is measuring the effects of behavioral interventions. It was also clearly noted in the title that African women in the primary care settings would be the target population for the study. The purpose of the study must be clearly stated and consistent with the background study presented (Brockopp & Tolsma, 2003, 407). The purpose of the study was clearly stated and was designed to test the efficacy of brief HIV/sexually transmitted disease (STD) risk-reduction interventions among African women in primary care settings. The study was in congruence with the background data as the background itself entails the alarming statistics of STD/HIV occurrences among African women in primary care settings and the interventions or measures addressed by the health care provider to reduce the risk of disease-occurrence. Literature Review and Conceptual Framework If one would have look for the subparts literature review and theoretical framework, one may no t able to see it directly in the study as literature reviews are integrated in various parts of the study, particularly in the background of the study.

Meaning Of Employee Voice Commerce Essay

Meaning Of Employee Voice Commerce Essay Collective voice achieves what a lone voice could never do. Collective representation is also the foundation of a partnership relationship between employers, employees and unions that bring positive benefits for the business (Prosser, 2001). Throughout the twentieth century collective bargaining was the most significant means of regularity relationships in UK between employers and employees via trade union. In continental Europe there is more emphasis on employee voice having some role in the practice of companies. As defined by Boxall and Purcell (2003): Employee voice is the term increasingly used to cover a whole variety of process and structures which enable, and sometimes empower employees, directly and indirectly, to contribute to decision making in the firm. This essay will be focusing on the key areas such as Meaning and Purpose of employee voice, the frame work of employee voice, mechanisms and the impact of employee voice on unionised and non-unionised organisations. Meaning of Employee Voice Voice is a term that has been more widely used in the practitioner and academic literature on Human Resource Management and Industrial Relations in recent years (Breadwell 1998, Sako1998, Benson2000: Roche, 2000). According to Hirschmans classic study (1970) of African railways, he said that voice is an option for customers in a context of how organisations respond to decline, since then the term as been used in different applications. But Freeman and Medoff (1984) argued that it would be better for both the employer and employee to have a voice mechanism. Employee voice is said to be a two way communication process between the employer and the employee, in which the employers communicate to their employees as well as receiving or listening from the employee. Employee voice is one of the most important characteristics of employee participation. Employee voice mainly focuses on how employees can be part of decision making in the firm, which can be done through trade unions or by any other means of support. Employee Voice can be reached out by different forms of medium, but the main forms of means stated by (Millword et al.(2000)) are via trade union membership, recognition and representation, via indirect or representative participation mechanisms such as joint consultation and via direct employee involvement in the management .Freeman and Medoff( 1984) believed that trade unions were one the best means of approach for the employees to put there point across to the management as they remained independent . Purpose of Employee Voice Four main purpose of Employee voice according to Michael Armstrong (2006) First voice talks about Individual Dissatisfaction, in this type the main aim is to solve a problem or an issue with the management, like finding expression in a grievance procedure or speak up programme. The second voice talks about expression of collective organisation where voice provides a countervailing source of power to management, which is either done with the help of unionisation and collective bargaining. This can be related to Freeman and Medoff theory. The third voice is about contribution in management decision making, the main purpose is concerned with decision making which is generally regarding work organisation, quality and productivity. This view is evident in high involvement. Fourth voice is all about mutual understanding between the employees and the employer. Basically it is a form of mutuality, with partnership seen as delivering viability for the organisation and its employees. Types of Employee voice There are various forms of Employee voice. Lewin and Mitchell (1992) distinguished voice between mandated voice (e.g. co-determination and legislation) and voluntary voice (e.g. collective bargaining and grievance procedures). The framework for employee voice has been modelled by Marchinglon et al (2000) Voices can be divided into two different parts: Individual- which is purely based on employees. Collective- which is based on unions or any forms of groups. Shared and Contested Agenda- which covers four ideal types which are upward problem solving, grievance process, partnerships and collective bargaining. Organizations can see one of these dimensions, whereas organization can have more than two dimensions at the same time. This frame work of voice is more on the broader perspective and systematic. Mechanisms of Employee Voice Employee voice mechanisms can be divided into three categories: Upward Problem Solving- refers to an technique in which managers use to tap into employees ideas and opinions, either through two way communication or through any specific systems set up for the employees to express their voice, it is structured such that it can be operated directly between managers and employees rather than any employee representatives. Techniques included in upward problem solving are: -Electronic media: sharing and seeking of ideas via electronic means such as email. -Two-way communication: sharing and seeking ideas face to face between managers and staff to whom they report, e.g. By having one on one interaction or by regular meetings. -suggestion schemes: where each of the employees put their ideas and suggestion to the management, who then make sure the relevant ideas are implemented. -Attitude Survey: is basically sending out questionnaires or conducting survey to check on the level of satisfaction with a particular aspect of work or organization. -Project Teams: group of employees brought together to discuss quality of work in the organization or any issues regarding the organization. b) Representative Participation- refers to a scheme in which the employee representatives meet up with the managers on a regular basis. The main characteristic of that there is no direct involvement of the employees and their managers. Techniques used in Representative Participation are Partnership schemes, European work council, Joint consultation, and Collective Representation and Employee forum. All of these mechanisms are formal, but informal mechanisms can be very effective form of voice at small organizations. Example for informal voice is grey point, strikes and many more. c) Engagement is a feeling on the part of the employees that are able to express their view point to the management and in return the management would will provide support to allow this to happen, so that the employees are satisfied. Union and Non-union forms of employee voice and it impact on organisational performance as a whole Lot of research and study has been conducted and different theories have been collected regarding union and non-union representation of employees. Freeman and Medoff (1984) said that unions are the key mechanisms for improving workers productivity, reducing economic inequality and stabilizing the work force. Whereas according to the Human Resource Management (HRM) there has been an increase attention on collective decision making, information sharing and employee participation (Benson, 2000). Unionised Employee Voice According to Boxall and Purcell (2003) in industrial relations, the main reasons for employee voice representation are collective bargaining and consultation. Freeman (1976) defined unions as the institutions of collective voice in the labour market, Freeman further stated that collective forums for employee voice is more effective as its strengthens up the worker communities and provides a direct contact between the employees and management; but Addison and Belfields ( 2004) argued that this union structure would create an communication gap between the workers and management because they have to deal with issues through an third party. Freeman and Medoff (1984) also stated that unions play an important role in minimising the turnover rate as they provide their employees with voice mechanisms through which they rectify work related problems and also negotiate for higher compensation package. Freeman and Medoff (1984) arguments was supported by Batt, Colvin and Keefe(2002) who also be lieved that employees have to be given an higher compensation than what they would earn in an non-union set up and also unions strengthens employees, by providing them voice which would help them in reducing the grievance and pay inequality. Unions not only help in strengthening the employees, but they also help employers in minimizing turnover ratio, reducing hiring and training for new employees. Pettinger (1999) states that many organisations prefer to have a unionised set-up rather than unstructured approach for employee voice recognition, as it consumes less time and energy. Freeman and Medoff further added that unions can stop the organisation from engaging themselves into an opportunistic behaviour, which could cause damage for the workers. Basically unions help the organization to take proper care of their workers concerns so they would be motivated and committed in fulfilling their job responsibilities. Unfortunately unions have a negative impact on the organisations as well. Many researchers and employers state that, one thing which hurts the business and employers badly is stoppage of work by conducting strikes for fulfilments of their demands. A recent incident can be considered as an example, which is about Royal Mail (UK).Where Communication Workers Union (CWU) went on series of strikes from July to october,2007 which was regarding increase in pay, which not only caused damage to Royal Mail but also other business. This Example gives rise to the argument that unions tend to be selfish and not consider the needs or repercussions which are going to be caused, which could affect the long-term future of the organization. Most of researchers believe that unions help in increasing workers efficiency and productivity, but Addison and Hirsch (1989)denies this statement because there is average effect of unions on employees productivity and efficiency is quite less, as they are located in industries with low growth rate, they further believed that unionised set-ups experience lower profit margin; there are some exceptions, where most of the Asian organisation such as Sony, Tata Motor (India) and others, have a very well established union structure and still making huge amount of profit, probability a lot more than other organizations, so the efficiency and effectiveness of unions also depends on environment of business. Non-Unionised Employee Voice Pettinger, (1999) describes non-unionised employee voice to be forms of joint consultation which includes joint consultative committees and work councils. Joint consultative committees act like a bridge in providing formal information sharing mechanisms among management and the employees. In a non-unionised employee representation joint consultation not only allows management to determine the issues in which they want employee participation to seek their opinions for better solutions, but also they retain the right to decide the final outcomes or results. Management view is taken into consideration rather than the employees as employers are the one investing money in the business and they would want the best performance, so they would be deciding rather than the employees or unions. Work council are constituted by the organisations and representatives are chosen from different departments so that employees views concerns can be answered. Work council provided benefits both employees and employers by providing them with improved work flow system, increasing trust and cooperation and by spreading the use of the best practice. Work councils are representatives for the entire workforce of organisation regardless of the membership. Croucher and Brewster (1998) stated that work council are more effective when compared to trade unions in dealing with issues related to work practice, this argument was further supported by Pettinger (1999) that work council acts as a forum to exchange ideas, which will encourage the employees to participate in the growth of the organisation and also give rise to flexibility in working environment, which reduced isolation between different departments in the organisation. The work council also has an negative impact on the organisation unlike the trade unions, they are created in-house and are not dependent bodies representing employees issues, due to this an additional cost has to be bared by the organisation which will be an problem for the employers( Pettinger,1999). There is a common believe that employees might not understand the strategic perspectives of the organisations as it is an in-house creation of committees, they might bog down to management pressure where they have to make difficult . Critics of work council argued that they are the employers initiated structure, based on their own terms so they cannot be effective in voicing employees concern and issues, and are likely to serve management position on certain issues (Gollan,2001). He further stated that this structure is believed to have more management supporters, so they are not fully independent of bias factors. Benefits for Employers According to the CIPD view, high performance workplace knowledge and skills are developed and better used, leading to high valve enterprise and an increasingly knowledge economy, with a greater voice for employees. The employers are benefited by employees skills and knowledge can be better used leading to higher productivity. Employees feel more valued, so they are more likely to stay and contribute more to the organisation. The gains a positive reputation, making it easier to recruit good employees. Conflict is reduced and co-operation between employer and employee is based on interdependence. Benefits for Employees Having more influence over the work. Higher job satisfaction. More opportunities to develop skills. More job security if their employer is more successful as a result of voice imitative. Impacts of Employee Voice Conclusion From an organization point of view it would be in the companys best interest to involve management programmes that includes several voice mechanisms, by encouraging employees voice at the workplace through various methods , an organisation can fulfil an ethical and political need while also fortifying their bottom line by awarding high exit ration and resignation rate, It can be precisely conclude that choice of employee voice mechanisms entirely depends on the circumstances and the environment in which employees are conducting their business activities.

Globalisation & Liberalisation

According to Herman E Daly, Globalization serves the villous of a single, cosmopolitan, integrated global economy. This definition focuses on the cross border movement of goods, services and resources (financial and human) impacting on the domestic and global assets and employment. Globalization, thus focuses on an integrated economic world in which the economy is a single market characterized by trade and Investment flows, cross border economic activities In production, Investment financing, movement of capital, technology, labor, Internationalization of consumption, capital, and services.Economic liberation's is the gateway of globalization and financial liberation plays the most crucial role in integration of one neutron economy on the global economic network. However, very often the term liberation's and globalization are used simultaneously. Important instruments of liberation's are regulation of financial market to allow foreign capital, foreign investment, to and fro flow of c apital etc. Reduction of tariff and non-tariff barriers of trade, simplifications of customs measures etc.For successful global Integration a country must move to economic liberalizing by dismantling entry barriers and Licensing system, reduction in physical restrictions on imports, reduction in control n capital and current account, reforming financial system and opening up financial market to private (domestic and foreign) players, removing controls on foreign capital (FDA and portfolio) flow to the country etc. Globalization however, Is not a new phenomena of the current world activities.Economic historians have traced two strong waves of globalization. The first wave of globalization spread over 1 870 – 1914 while the second wave of globalization began roughly in 1960 and continuing. The current wave of globalization is much faster and deeper. Globalization today is fundamentally a new economic phenomenon, and a process to set up a new economic order globally increased in tegration and Interdependence of production, consumption and services. The present wave of banquets – Volvo.V Issue 1, January 2005 Globalization and Life Insurance gallstones NAS slantingly Innocence Improved speculation In resource allocation, productivity enhancement and specialization and greater innovation, adaptability and utilization of technology which has necessitated the need for cross border economic activity for all the countries. Resource mobility has not only reduced the cost of production and distribution but also boosted competition across the order.Drivers of Globalization The present wave of globalization has been significantly influenced by advances in information and computer technology, increased flow of trade and capital. Improved specialization in resource allocation, productivity enhancement and specialization and greater innovation, adaptability and utilization of technology which has necessitated the need for cross border economic activity for all th e countries. These have not only reduced the cost of production and distribution but also boosted competition across the border.Therefore important drivers of globalization are expansion of International Trade, Internationalization of Financial Market and Migration, Baldwin and Martin (1999) observed key aspects of globalization namely Trade, investment, migration and Factor prices , Capital flows and Markets, and Industrialization and Income Convergence and Divergence. Both waves of globalization were driven by radical reduction in technical and policy barriers to international transactions†¦. But the uniqueness in recent globalization is heavily shaped by the dramatic reduction in communications cost, what is sometimes referred to as the death of distance'.Financial Globalization Advancement in information technology, innovation in financial products, and increase in trade and services provided boost to the cross border flow of capital. Capital Mobility is considered as an in dicator of financial integration. Other indicator being gross stocks of foreign assets and liabilities. We shall discuss this in detail the section Financial Globalization The process of Globalization is strongly supported by Financial Globalization.There is an inextricable relation between increased international trade in goods and services and the increased flow of international UAPITA. It is because increased trade is followed by increase in payments, banking service, hedging etc. Stock markets, as we have noted in the beginning, has replaced the role of Banking to a great extent as a financier to corporate and development funds. Stock markets, in a globally integrated financial market facilitate risk sharing, improve efficiency of resource allocation, impact savings decisions and provide liquidity thus supporting faster economic growth.Globally integrated stock markets facilitates economic growth in several ways namely : Banquets – Volvo. V Issue 1, January 2005 021 Impro ve much name eloquently In ten market Prove prudent resource allocation prospects Create an environment for flow of savings thus reducing uncertainty of capital in the market Reduce risks through global diversification Liberalized and internationally integrated stock markets thus boost economic growth. Benefits of Financial Globalization Liberation's and globalization produces immense benefits to the countries integrated.Liberation's creates conducive climate for faster economic growth, allows upgrading of technology, provides scale economy, expansion of markets domestically and internationally. Economic integration through liberation's can also expand Job opportunities in domestic market and through migration of labor in general. Financial Globalization produces higher economic growth through direct and indirect impact on economy . Liberation's and globalization produce immense benefits to the countries integrated.Liberation's creates conducive climate for faster economic growth, a llows upgrading of technology, provides scale economy, expansion of markets domestically and internationally. Economic integration through liberation's can also expand Job opportunities in domestic market and through gyration of labor in general. However, liberation's of financial markets provides growth generating opportunities including the following. By encouraging FDA, developing economies can import much needed technology, which would further generate spillovers for local firms.Saggy (2002) mentioned three types of potential channels of spillovers, namely Demonstration Effect, (local firms adopting multinational introduced technologies), labor turnover switchover of trained labors to local firms (enabling technology diffusion) and vertical linkages (multinationals supplying technology to suppliers of intermediate goods). Global Financial integration augment much required domestic saving and boost up capital investment in investment starved countries. It also provides avenues fo r better allocation of capital and minimizes risk.Further, capital flow is accompanied by transfer of technology and finally assists in promoting healthy capital market. Indirect influences of globalization include promotion of globalization and integration of domestic economies which is followed by improving the macro economic policy frame work and setting up economic institutions and better governance system. Financial Liberation's has forced many countries to open up financial markets and relaxed the rules of intermediation allowing financial services institutions like investment banks, asset management companies, Mutual Funds, Pension Funds etc. To operate in newly liberalized markets. The forces of change unleashed by financial globalization, reenacted In Electroplating AT Dangling system, Increase In cross border financial activity increased competition in savings market convergence in financial services industry. B. Globalization of Insurance Market Insurance is an integral p art of national economy and a strong pillar of financial arrest. Therefore, waves of globalization have also deeply influenced the insurance market worldwide. Financial Market Globalization has also been strongly supported by Globalization of Insurance.With the increase in Trade, Direct Investment and Portfolio Investment, there has been an ever growing demand for Insurance services particularly in the emerging markets. Globalization of Insurance market, as a part of the overall process of liberalizing in emerging and other countries enabled the foreign insurance companies to enter in those countries and benefited both. The riving forces of insurance market globalization has been identified by Swiss Re (Sigma No. 4/2000) as the ‘push factors' and ‘Pull Factors'.The Push factors are the motives behind the movement of foreign insurance companies while the pull factors are the motives behind allowing the foreign companies to operate in local market, l) Push factors : Insura nce Companies move out to emerging markets due to Increasing Global Trade , Growing Direct Investment , Potential Future Growth in Emerging Markets , Saturation in industrialized countries and Strong growth in emerging entries and expected Efficiency Gains through Diversification , Economics of scale etc it) Pull Factors : The important pull factors in emerging markets – Emerging Markets have Strong Economic growth and Trade, and there are substantial requirements of capital in Emerging Markets to cover major risks. There are several benefits to the countries allowing foreign insurance companies to operate in their countries which can be broadly classified into Economy related, and Insurance marked related Economy related benefits to the local country : Foreign insurance companies along with local companies add further momentum to obligation of savings. Institutional net work in the savings market increases, which also influence the savings behavior of household and corporate savings.Resources and capital allocation in the Domestic Market increases with the increased sophistication brought by the foreign insurance companies It also improves the financial stability in the host country, as well as facilitates improvement in production and Trade. Banquets – Volvo. V Issue 1, January 2005 023 Insurance market related benefits : Capital structure of entire insurance industry improves because foreign companies brings fresh capital with them. Market efficiency improves due to information dissemination, global operating knowledge and increased competition. Management inclemency Increases Decease Torrent companies Drill Walt teem global experience and management innovation. Range of available products increases because foreign companies bring with them a wide range of products and product development expertise.Customers' service improves. Increased competition, technology led service, and cost competition finally benefits the consumers. Globalization also improves Regulatory and Governance system. It also improves market conduct and Ethical Business Standard. Jennifer Rankin (2003) mentions the following factors driving the insurance companies' cross border activity. Many countries are moving away from protectionism and state control and taking more market driven approach especially in the insurance and financial services and opening up their markets to foreign companies. The process of Insurance globalization significantly influenced by the GOATS/WTFO.A major break through was achieved in 1997 with an agreement of Liberation's of financial services following which 102 countries committed to remove entry barriers and liberalism their markets. The GOATS agreement offers legal security and protection to global insurance players. With the removal of entry barriers in emerging and less developed countries there has been an increased flow of funds from developed countries to the emerging and less developed countries. According to Swiss R e (Sigma No. 4/2000) â€Å"In recent years there has been a strong increase in the demand for insurance in the emerging markets. The average annual growth rate in the emerging markets has since 1990 been twice as high as industrial countries in both life and non-life insurance.There is already an indication of slow Roth and saturation of insurance market in industrially developed countries. During 2003, Global Life business witnessed a decline of -0. 8%. However, emerging market life business grew by 6. 6% as against -1 . 7% decline in industrialized countries. In non life business, while industrialized countries achieved 5. 7% growth in real premium income, emerging markets registered 8. 5% growth rate in 2003. However, total premium income of emerging market in 2003, was US $ 314128 million which represented 10. 68% global premium income, whereas share of industrialized countries with US $ 2626542 million representing 89. 2% of global premium. This is an indication of huge potent ial emerging market.Globalization of Financial as well as Life Insurance Market is an inevitable phenomena. In the years to come the globalization of Insurance Market is going to speedup further. The impact of globalization will also be felt more in emerging markets which have exhibited better potential for growth in insurance market. Data provided in Table No. 1 and Table No. 2 shows that countries which have extensively opened up the Insurance 24 Market to the Private and Foreign Companies have achieved relatively better growth in insurance density and penetration. It has also been noted in India that growth of Insurance Market was faster in the post liberation's period than that in pre- Tatterdemalions pergola.However, one AT ten constraints AT Insurance Gallstones Is a small number of global players as noted by UNEVEN (2002). The private insurance industry is largely a national industry rather than a global one. The number of truly global insurance players is in the range of 20 to 30 only. Another 70 companies operate significantly in more than one continent through branches. Only 1. 2% of global insurance premium comes from across border business. C. Impact of Liberation's on Economic growth Research of Bernstein and others (1998) shows that FDA contributes more domestic growth than domestic investment. And also FDA is more productive than domestic investment.Liberation's of capital markets attracts foreign investment which influences the price of equity thereby reducing the cost of capital. Research of Beakers and Harvey (2000) indicated that post liberalized regulatory reforms bring down the cost of capital and also help to increase inflow of capital. Financial liberation's also imparts structural formats of capital markets, improves the closures, transparency and corporate governance which creates growth prospects in a liberalized country. It has been noted that the average per capita income is higher in the countries with more open economic policies a nd better global linkages, than in the countries with less openness in financial sector. Globalization has helped promote convergence of per capita incomes.Per capita incomes have grown faster in globalization developing countries (those lowering trade barriers) than in rich countries – 5 per cent versus 2. 2 per cent in sass†¦Ã¢â‚¬ ¦. Non globalization Developing countries have lagged behind. Finance and Development, March 2002. , UP). Resource (2002) has observed that â€Å"the trend of rising inequality over the past 200 years, primarily between countries, now appears to have been reversed, and the experience of the 19th century suggests that increased globalization will accelerate this decline. Parkas et al (2003) has noted that ‘International Financial Integration can help to promote domestic financial sector development, which in turn can help to moderate macro economic volatility.However, thus far these benefits of financial integration appear to have accru ed primarily to industrialized countries. D. Growth of Life Insurance in India Indian Life Insurance Industry, since nationalization, has registered a significant growth and gradually increased its share in household financial savings. As noted in table 4, the Share of Insurance Funds has increased from 8. 7% in 1993-94 to 14. 9% in 2003-04, while the share of life insurance funds increased from 8% to 14. 5% during the same Banquets – Volvo. V Issue 1, January 2005 025 per 00 Ana In terms AT GAP It NAS Increased Trot I Nils Is a gallants achievement of Life Insurance Industry which till recently represented by LICE of India.Growth in Life Fund is considered to be an important indicator of growth of Life Insurance Industry and as can be seen from the Table 4, LICE has performed exceedingly well. LICE, after nationalization of 256 Life Insurance Companies, started with a Life Fund of RSI. 410. 40 core, which in course of time increased rapidly and stood at RSI. 3,21 ,754 core i n 2004. Similarly, the total assets of LICE has increased from RSI. 463 core in 1958 to core in 2004. High growth of Life Fund and Assets of LICE was possible due to significant growth in New Business, which got a boost during the Post Liberation's period. First time in 1999, LICE sold more than one core (1. 8 core) policies in a single year, however, growth became faster during the post liberalized period and in 2002 it crossed the 2 core mark by selling 2. 25 core policy, which increased further to 2. 42 core in 2003. In 2004, New Business (AS) had gone up RSI 2,02,898. 14 core under 2,69,63,504 policies. Total in force policies serviced by LICE by the end of 2004, stood at 15. 39 core under Sum Assured of RSI. 9,25,033. 33 core. Liberation's of Indian Insurance market has provided further push of the Insurance Industry. By the end of March, 2004, there were 13 Life Insurance companies including LICE in the market, which has not only generated competition but also provided a wide range of product choice to the customers.An overall view of Indian Life Insurance market can be obtained through data released by ERDA, shown in the Table 6 and Table 7. Accordingly total no. Of policies underwritten in 2004 increased by, 12. 78% from 2002-03 to 5 2003-04, while the premium under these policies increased by 51. 80%, from lacks to 18,71 ,016. 02 lacks during the same period. So far LICE is concerned, there is a fall in market share in New Business. In No. Of Policies the market share declined from 96. 70% to 94. 21% while in premium income the market share of LICE declined from 92. 03% to 87. 04% during the same period. These indicate that Indian Life Insurance in general has expanded since liberalizing on the one hand and market has been increasingly becoming competitive. E.India in the International Context Though the share of Life Fund in household Financial Assets has gone up during the last decade and Indian Life Insurance Industry registered better growth rate compared with global growth rate yet total premium volume and global market share minded quite low. Total premium volume of Life Insurance Industry in the World at 9% growth rate increased from US $ 1 534,061 2002 to US $ 16,72514 2003, whereas in India 26 growth rate was much higher at 18% and Total Premium volume increased from US $ s S EYE ruling ten same pergola. Insurance Density (premium per capita and Insurance Penetration (premium in percentage of GAP) which are important growth indicators are quite low in India. In the year 2003, Life Insurance Density in India was only US $ 12. 9 as against the World Density of US $ 267. 1. Similarly, Life Insurance Penetration in India was only 2. % as against World Penetration level of 4. 59%.

Management Information Systems Case Study

1) Problems with upgrades from Quick books to new accounting software package? How could they have avoided? These problems could have been avoided if when they made the initial decision for replacement of QuickBooks, they should have advised with a finance person before the change and or never made the change in the first place. Quick books was user friendly for the staff, and the newly implemented accounting system was more sophisticated and complicated accounting system than what everyone was used to. Nobody knew how to extract financial or operational data to make critical business decisions. Problems developing reusable reports were also a problem, this became too time consuming. 2) Why did SAP’s Business One prove to be a better choice for Wolf Peak than the new accounting software? Give Examples. SAP was designed specifically for Wolf Peak’s Business, and offered affordable promises and provided rapid return on investments, provided accurate up to the minute view of the business. SAP was a simple environment therefore the employees learned SAP Business One quickly and used it effectively. SAP’s Journey team came to the business to implement and demonstrate how the system worked. The benefits far outweighed the initial costs of original accounting software that was purchased after QuickBooks. XL Reporter is a program that comes with SAP Business One that lets the company builds custom reports that proved extremely helpful. Wolf Peak is now expanding SAP into the warehouse for inventory and management as well as CRM Customer Relationship Management. Overall SAP Business One is fulfilling and assisting all aspects of Wolf Peak’s bus iness. 3) Should most SME’s use an integrated business software suite like Sap Business One instead of specialized accounting and other business software packages? Why or Why not? Reports that used to take months to create can now be created quickly by Business One. Business one creates an environment where the decision makers can get the information they want on a timely basis in a format they understand and can actually use. This program delivers useful information to make good solid business decisions for success. I believe that no individual brand or software is the superior. It is obvious that SAP Business One was a perfect match for Wolf Peak, but in the end, whatever works and proves success for the company’s employees and bottom line is the exact software match for the company. Overall it seems that an easy learning curve and information extraction is best for businesses. Management Information Systems Case Study 1) Problems with upgrades from Quick books to new accounting software package? How could they have avoided? These problems could have been avoided if when they made the initial decision for replacement of QuickBooks, they should have advised with a finance person before the change and or never made the change in the first place. Quick books was user friendly for the staff, and the newly implemented accounting system was more sophisticated and complicated accounting system than what everyone was used to. Nobody knew how to extract financial or operational data to make critical business decisions. Problems developing reusable reports were also a problem, this became too time consuming. 2) Why did SAP’s Business One prove to be a better choice for Wolf Peak than the new accounting software? Give Examples. SAP was designed specifically for Wolf Peak’s Business, and offered affordable promises and provided rapid return on investments, provided accurate up to the minute view of the business. SAP was a simple environment therefore the employees learned SAP Business One quickly and used it effectively. SAP’s Journey team came to the business to implement and demonstrate how the system worked. The benefits far outweighed the initial costs of original accounting software that was purchased after QuickBooks. XL Reporter is a program that comes with SAP Business One that lets the company builds custom reports that proved extremely helpful. Wolf Peak is now expanding SAP into the warehouse for inventory and management as well as CRM Customer Relationship Management. Overall SAP Business One is fulfilling and assisting all aspects of Wolf Peak’s bus iness. 3) Should most SME’s use an integrated business software suite like Sap Business One instead of specialized accounting and other business software packages? Why or Why not? Reports that used to take months to create can now be created quickly by Business One. Business one creates an environment where the decision makers can get the information they want on a timely basis in a format they understand and can actually use. This program delivers useful information to make good solid business decisions for success. I believe that no individual brand or software is the superior. It is obvious that SAP Business One was a perfect match for Wolf Peak, but in the end, whatever works and proves success for the company’s employees and bottom line is the exact software match for the company. Overall it seems that an easy learning curve and information extraction is best for businesses.